Home Sweet Home: Invest in Home Building and Home Improvement

Home Sweet Home

If you think more and more people will say goodbye to mom and dad’s basement, and roll out a welcome mat of their own, Home Sweet Home could be an investment for you.

The home building industry didn’t fare well after the recession of 2008, but it’s going through a big growth spurt, which may continue given the massive number of people entering prime house-buying ages.

Why invest in home building?

A home is the largest purchase most people make in their lifetime, and home building is big business. The home industry got a beat-down thanks to the 2008 recession, but it has bounced back nicely. Population trends could keep fueling that growth, since the biggest groups of Americans are now 22-24, and are just on the verge of settling down and buying homes.

What companies does this investment include?

Home Sweet Home is an exchange-traded fund (ETF) called the SPDR S&P Homebuilders ETF (XHB). The fund includes over 40 companies in many parts of the home building industry.

Need someone to build you a house? NVR, Inc. has got you covered. Want to fix it up? Lowe’s Companies and Home Depot have over 4,000 stores with just about every home improvement product under the sun. Owens Corning insulation and A.O. Smith water heaters keep your home toasty-warm. Allegion and Fortune make doors and locks to keep you safe, as well as must-haves like plumbing fixtures. Masco provides cabinets and windows. And Helen of Troy fills your kitchen with Oxo products and PUR water filter systems.

To learn more about Home Sweet Home, visit the fund website. It has a low, 0.35% expense ratio, and the fund is managed by State Street Global Advisors, which has been around for 40 years, and manages $2.4 trillion.

What are some other Stash investments like this?

If you like the idea of investing in what you believe, here are some other Stash Investments to consider:

  • Water the World. Companies that supply the critical demand for water as the population grows.
  • Clean and Green. Clean energy companies including providers of solar and wind power.
  • Equality Works. Companies that provide LGBT employees with equal rights and respect.
  • Defending America. Aerospace and defense companies that help the military secure our skies.

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